Unsecured Personal Loans from £50 to £5,000^†

An unsecured personal loan lets you borrow money without providing any security, simply make repayments over a fixed term. Most personal loans are unsecured, and this low risk funding solution gives lots of benefits for borrowers.

If an unexpected payment crops up, or you find yourself facing an emergency, an unsecured personal loan can be used to cover the upfront costs. You can then pay back the loan in weekly or monthly instalments plus interest. The best part? There’s no need to offer any personal assets as collateral.

Find out if this type of personal loan is right for you with our complete guide below:

• What is an unsecured personal loan?
• How does an unsecured personal loan work?
• Am I eligible for an unsecured personal loan?
• Can I get an unsecured personal loan for bad credit?
• What can I use an unsecured personal loan for?
• How much could I borrow?
• What is the best unsecured personal loan in the UK?
• Are there alternatives to unsecured loans?
• How can I apply for an unsecured personal loan?
• Why choose ThisLender for unsecured finance?
• How long will it take to receive the money?
• Where do I go for help if I’m in financial difficulty?

What is an unsecured personal loan?

An unsecured personal loan is a type of consumer finance. It is ‘unsecured’, which means that it does not require any type of collateral. This type of loan is the most popular form of personal finance, as it allows borrowers to receive money without risking valuable personal assets.

How does an unsecured personal loan work?

An unsecured loan allows funds to be borrowed without requiring any collateral to be offered as security for the loan. They work by providing borrowers with an upfront, lump sum of money, under the agreement that the money will get paid back with interest.

Once the loan has been received, the borrower is then expected to make weekly or monthly repayments at a predetermined rate. The borrower will continue to make these payments over the course of the loan term, until the amount has been repaid to the lender in full.

These loans differ from secured personal loans, which require borrowers to risk valuable collateral (such as a car or property) as security for the loan.

Am I eligible for an unsecured personal loan?

Generally speaking, unsecured personal loans are more straightforward to arrange. This is because there is no collateral involved, so no valuation needs to be arranged or conducted.

At ThisLender we try to arrange as many unsecured personal loans as possible, even for customers with poor credit. You could be eligible if you meet the following criteria:

• Permanent resident with a UK address
• Over the age of 18 years old
• Employed with a regular income
• No CCJs or bankruptcy
• UK bank account and debit card

Can I get an unsecured personal loan for bad credit?

Yes! Unsecured personal loans for bad credit exist to help people with low credit scores access money. At ThisLender, the lenders we work with are able to offer solutions for bad credit, so you don’t need to worry if you have a less than perfect credit score.

Unsecured personal loans for bad credit tend to be offered at higher rates, due to the increased risk for the lender. So, if you’re applying for a loan with bad credit, you must be absolutely sure you can afford to take on the debt.

Sometimes, our lenders will require a guarantor to co-sign your loan agreement. This is because there is no collateral being provided, so the lender needs another way to protect the loan investment.

What can I use an unsecured personal loan for?

There aren’t many restrictions when it comes to what you can or cannot spend your loan on. These personal loans are designed to be flexible so that they can cover a range of expenses.

However, you should never take out a personal loan for non-essential purposes. These loans have the potential to get borrowers into debt, and can damage your credit score if you struggle to make repayments.

You could use your unsecured personal loan to:

• Consolidate existing debt
• Cover medical or veterinary bills
• Pay for funeral expenses
• Make a large, one-off payment
• Fund vehicle repairs and MOTs

How much could I borrow?

When you apply for an unsecured personal loan through ThisLender, you can access any amount between £50 and £5,000^†.

Please be advised that you might not be approved for the full amount you apply for. The lender will analyse your application before determining how much you can realistically afford to borrow.

What is the best unsecured personal loan in the UK?

The best unsecured personal loan is one which provides you with favourable terms and competitive interest rates. When comparing unsecured loans, there are a few factors to consider. Be sure to look out for:

• Interest rates (APR)*
• Early repayment fees
• Additional lender charges and fees
• Loan term and repayment options
• Lender credibility

Do your research to ensure you receive the cheapest loan deal possible, and before signing the loan agreement, you should check the lender’s authenticity using the Financial Services Register.

All legitimate UK lenders are authorised and regulated by the Financial Conduct Authority (FCA), so taking the time to check this can prevent issues like borrowing from loan sharks.

What is APR?*

APR stands for ‘Annual Percentage Rate’ and is the formula used to work out the cost of credit over 1 year. It combines the interest rate and other lender fees. The higher the APR, the more you’re likely to repay.

Are there alternatives to unsecured loans?

Yes, unsecured loans are just one type of personal finance. Though unsecured loans make up the majority of personal loans, you could also apply for a secured loan. Alternatively, you might want to consider:

• Borrowing from friends / family
• Credit card
• Bank overdraft
• Salary advance
• Line of credit

How can I apply for an unsecured personal loan?

You have two choices when it comes to applying for unsecured finance. You can either apply via a direct lender’s website, or through a broker, like us! At ThisLender, we save you time by searching a panel of lenders in minutes.

We work with a panel of UK lenders and are able to quickly match your application to a suitable lender for your situation. In doing this, we help you receive an instant online decision, each and every time.

All you have to do is complete our online application form, it only takes a few minutes. After that, we'll do our best to search a direct lenders that's suitable for your needs. Once you have been matched to a lender, and you approve, they will complete various final checks, including a hard credit check, to ensure affordability.

Why choose ThisLender for unsecured finance?

• Secure service: At ThisLender we are committed to creating a safe online space where people can access the money they need, worry-free! We use secure technology to keep your data confidential at all times.
• Free, no-obligation quote: It costs nothing to make an application through ThisLender. The quote you receive is no-obligation too, which means you can change your mind at any time.
• Authorised by the Financial Conduct Authority (FCA): Treating our customers fairly is at the heart of everything we do. All of the lenders we work with are regulated by the FCA.
• Soft credit search: When you apply through ThisLender, the application won’t leave a footprint on your credit file. We will not perform a credit check, but our lenders will complete a soft search when assessing your eligibility for a loan.
• Flexible repayments: Choose a payment structure that suits your schedule, we offer unsecured loans with weekly or monthly payments.
• Short loan terms: There’s no need to worry about having to pay off your loan for years and years to come, we keep repayments short over 3 - 36 months.

How long will it take to receive the money?

The lenders that we work with are able to provide fast access to finance. Many of them pride themselves on being able to provide loans within 10 minutes^² after approval. The speed at which you receive the money will depend on your application, financial situation and bank.

With that being said, online unsecured personal loans have far faster payout times than traditional funding institutions like banks.

Where do I go for help if I’m in financial difficulty?

If you are having financial difficulties or need to speak to someone regarding your financial situation before applying for a loan you can get free and confidential advice from MoneyHelper (formerly The Money Advice Service), National Debtline or debt charity StepChange.